Alexander Fishenko: Conspiracy to Ship U.S.-Made Microelectronics to Russia

Alexander Fishenko operated as an agent for the Russian government, conspiring to ship millions of dollars worth of sensitive U.S.-made microelectronics to Russia, according to the U.S. Attorney’s office.    The Justice Department said Alexander Fishenko, 49, of Houston, and a dual citizen of the United States and Russia, pleaded guilty in New York this week to serving as an agent of the Russian government in the United States and conspiring to illegally exporting controlled microelectronics to Russia, laundering money, and obstructing justice.
   “Fishenko lined his pockets at the expense of our national security,” said Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, in a statement. “This prosecution highlights the importance of vigorously enforcing United States export control laws.” 
   According to the court papers, between October 2008 and October 2012, Fishenko, who operated Houston-based Arc Electronics Inc., conspired to obtain microelectronics from manufacturers and suppliers in the United States for export to Russia. The electronics are carefully monitored and licensed by the U.S. government when exported since they can be used for military applications. 
   “The microelectronics shipped to Russia included analog-to-digital converters, static random access memory chips, microcontrollers and microprocessors. These commodities have applications in and are frequently used in a wide range of military systems, including radar and surveillance systems, missile guidance systems and detonation triggers. Russia does not produce many of these sophisticated goods domestically,” the Justice Department explained.
   Between 2002 and the present, Arc shipped about $50 million worth of microelectronics and other technologies to Russia. Fishenko also served as an executive of co-defendant Apex System, a Moscow-based procurement firm. Arc falsely claimed to be a traffic light manufacturer on its website, but actually didn’t manufactured any goods and operated solely as an exporter.
   At sentencing, Fishenko faces up to 20 years in prison for each violation of the International Emergency Economic Powers Act and the Arms Export Control Act, up to 20 years in prison for money laundering conspiracy and obstruction of justice, and up to 10 years in prison for acting as a Russian agent, the Justice Department said. He will also face potential criminal forfeiture and fines.
   Ten other individuals and two companies were originally charged in October 2012.  Four members of the conspiracy have pleaded guilty and three are scheduled to start their trial on Sept. 21.